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GuruFocus has detected 6 Warning Signs with Union Pacific Corp $UNP.
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Union Pacific Corp (NYSE:UNP)
Days Inventory
51.76 (As of Mar. 2017)

Union Pacific Corp's average inventory for the three months ended in Mar. 2017 was $739 Mil. Union Pacific Corp's cost of goods sold for the three months ended in Mar. 2017 was $1,302 Mil. Hence, Union Pacific Corp's days inventory for the three months ended in Mar. 2017 was 51.76.

UNP' s Days Inventory Range Over the Past 10 Years
Min: 22.77   Max: 54.29
Current: 51.65

22.77
54.29

During the past 13 years, Union Pacific Corp's highest Days Inventory was 54.29. The lowest was 22.77. And the median was 33.77.

UNP's Days Inventory is ranked lower than
83% of the 633 Companies
in the Global Railroads industry.

( Industry Median: 10.84 vs. UNP: 51.65 )

Union Pacific Corp's days inventory declined from Mar. 2016 (56.24) to Mar. 2017 (51.76).

Inventory can be measured by Days Sales of Inventory (DSI). Union Pacific Corp's days sales of inventory (DSI) for the three months ended in Mar. 2017 was 13.13.

Inventory turnover measures how fast the company turns over its inventory within a year. Union Pacific Corp's inventory turnover for the three months ended in Mar. 2017 was 1.76.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Union Pacific Corp's inventory to revenue ratio for the three months ended in Mar. 2017 was 0.14.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Union Pacific Corp's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (736 + 717) / 2 ) / 4884*365
=726.5 / 4884*365
=54.29

Union Pacific Corp's Days Inventory for the quarter that ended in Mar. 2017 is calculated as:

Days Inventory (Q: Mar. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2016 ) + Inventory (Q: Mar. 2017 )) / 2 ) / COGS (Q: Mar. 2017 )*Days in Period
=( (717 + 760) / 2 ) / 1302*365 / 4
=738.5 / 1302*365 / 4
=51.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Union Pacific Corp's Days Sales of Inventory for the three months ended in Mar. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=738.5/5132*365 / 4
=13.13

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Union Pacific Corp's Inventory Turnover for the three months ended in Mar. 2017 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Union Pacific Corp's Inventory to Revenue for the three months ended in Mar. 2017 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Union Pacific Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 23.1922.7736.8033.7031.0233.4633.8333.9846.6654.29

Union Pacific Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DaysInventory 37.2443.7647.2949.8751.1356.2452.2349.6750.7951.76
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